5th Feb 2016 11:09
LONDON (Alliance News) - The following is a summary of top news stories Friday.
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COMPANIES
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BG Group reported full-year results that met market expectations as a 16% fall in revenue caused a steep drop in underlying earnings. The company, which is set to merge with Royal Dutch Shell, reported business performance earnings, which excludes special items and measures the underlying performance of the business, of USD1.69 billion in 2015 compared to USD4.03 billion a year earlier after revenue dropped 16%. Underlying earnings before interest, tax, depreciation and amortisation dropped 39% to USD5.63 billion from USD9.17 billion whilst underlying earnings before interest and tax fell 62% to USD2.42 billion from USD6.37 billion a year ago.
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Centrica said it has agreed to sell its interests in three UK wind farms to a consortium that will generate USD115.0 million in net proceeds for the company. The UK energy and storage company, also the owner of British Gas, said it has agreed with its 50/50 joint venture partner to sell the Glens of Foudland, Lynn and Inner Dowsing wind farms to a consortium comprised of the UK Green Investment Bank Offshore Wind Fund and funds managed by BlackRock.
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Standard & Poor's on Thursday downgraded Glencore’s debt to one notch above junk. S&P now rates Glencore triple B minus, from triple B previously, though its outlook has been moved to Stable as a result from Negative previously. The ratings agency cited the "challenging outlook" for the mining industry, according to the Financial Times, as well as increasing uncertainty about demand from China.
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Wizard Parent, which is owned by Francisco Partners, Golden Gate Capital, Thoma Bravo and Elliott Management, said it upsized the number of shares it sold in software company Micro Focus International after a placing announced late Thursday was met with strong demand from investors. Wizard raised GBP357.0 million from the placing, which took place overnight and saw the sale of 28 million shares, versus the original expectation of 22 million shares, at 1,275 pence per share. The shareholder had originally been looking to keep a stake of 17% in the company, but said on Friday the increase in the number of shares placed will leave it with a 13.8% stake in the company. Wizard came to own about 40% of Micro Focus when it sold Houston, Texas-based Attachmate to the company in September 2014.
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Just Eat said it has acquired four takeaway businesses for a total of EUR125.0 million, in a move to beef up its position in four different countries. The food delivery company said it bought takeaway food businesses from Rocket Internet in Spain and Italy, and from foodpanda in Brazil and Mexico, with the acquisitions to be paid for with existing cash.
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Residential landlord Grainger said it has agreed to sell its German residential portfolio and its German business platform to real estate investment manager Heitman LLC for EUR124 million. Grainger said it had sold its FRM German residential portfolio and its German business platform Grainger Deutschland GmbH to Heitman to release capital to support its UK private rented sector growth, as well as to deliver on its objective of simplifying its business.
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Halma said it has acquired a US communication technology company that is focused on the healthcare market for USD140.0 million in cash, immediately boosting Halma's earnings. The London-listed health, safety and environmental technology group said it acquired CenTrak Inc to bolster its medical division. Halma will pay the consideration, using its existing cash resources and debt facilities. Newtown, Pennsylvania-based CenTrak designs and manufactures sensors and proprietary communication technology that provides location data for healthcare facilities used to ensure healthcare providers are complying with regulations and to improve patient care.
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Shaftesbury said it has continued to see strong tenant demand, underpinned by robust footfall and spending, while making "good progress" with its major schemes. The real estate investment trust, which owns retail, restaurant and leisure assets across London's West End, reported EPRA vacancy of 2.0% at the end of December 2015, versus 1.6% at the end of September.
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CMC Markets priced its initial public offering towards the lower end of its guided range, as the spread better marked a new chapter in its history by joining the London Stock Exchange. CMC's IPO was priced at 240.0 pence per share, valuing the company at about GBP691.0 million, measuring up against a guided range of 235.0p and 275.0p. Conditional dealings in the shares on the London Main Market begin Friday.
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MARKETS
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UK indices were trading higher supported by mining stocks. Investors are looking ahead to US jobs data at 1330 GMT. Wall Street was pointed to a higher open.
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FTSE 100: up 0.6% at 5,931.75
FTSE 250: up 0.6% at 16,180.29
AIM ALL-SHARE: up 0.1% at 693.98
GBP: flat at USD1.4525 (USD1.4586)
EUR: flat at USD1.1187 (USD1.1195)
GOLD: up at USD1,158.18 per ounce (USD1,154.10)
OIL (Brent): flat at USD34.67 a barrel (USD34.62)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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There is no urgency to raise UK interest rates at present and the falling oil prices have benefited the economy, which is enjoying a robust recovery, Bank of England Deputy Governor Ben Broadbent said Friday. There was "certainly no great urgency to raise rates at the moment", Broadbent said in an interview on the BBC Radio 5. "We will respond to events as and when they happen," the policymaker added. On Thursday, the Bank of England decided to keep the key interest rate unchanged at its record low 0.50%, where it has been since 2009. The decision was unanimous for the first time in seven months after policymaker Ian McCafferty dropped his call for a quarter point rate hike. The stock of quantitative easing assets was maintained at GBP375 billion.
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Permanent job placements in the UK grew at a faster rate in January, the Report on Jobs compiled by the Recruitment and Employment Confederation and Markit Economics showed. The number of people placed in permanent jobs continued to rise in January, and to a rate above the survey's long-run average. At the same time, temporary and contract staff billings increased at the slowest pace in four months. The availability of staff for both permanent and temporary/contract roles declined further at the start of the year. Overall vacancies climbed again in January, with the pace of expansion picking up to a five-month high.
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Germany's factory orders declined more than expected in December, provisional data from Destatis showed. Orders fell 0.7% in December from November, when it advanced 1.5%. This was the first decrease in three months. The pace of decline was faster than a 0.5% drop forecast by economists.
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Iran asked the US to reassure European banks they will not be penalised for legitimate trade with the country, Reuters reported. "Rebuilding the confidence of the banks that the United States will not re-intervene in their relations with Iran may require some further assurance from the United States," Iranian Foreign Minister Mohammad Javad Zarif said in London.
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US President Barack Obama is proposing a USD10.0 per barrel tax on oil, The Financial Times reported. The move has received backlash from the energy industry, the report said, amid the ongoing pressure from low oil prices. The proposal was included in a budget plan that the Republican-led Congress will ensure is never enacted. The oil industry said that the tax would raise the cost of petrol by 25 cents per gallon and undo the shale energy revolution, the FT report said.
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By Arvind Bhunjun; [email protected]; @ArvindBhunjun
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